Yitzhak Tshuva
Tshuva bids to buy, delist Elad Canada
Owner of Delek Group's controlling interest submits acquisition offer for real estate company's 11% issued share capital not under his control at NIS 14.78 per share – its current market price
Real estate firm Elad Canada, controlled by businessman Yitzhak Tshuva's privately held El Ad Group, advised the Tel Aviv Stock Exchange on Tuesday that it had received an acquisition offer for its entire issued share capital from the owner of its controlling interest.
Deal Finalized
Leroy Peri, Calcalist
New York hotel owned by Israeli businessman's real estate arm sold to Sahara Group, owned by Indian billionaire Subrata Roy. Tshuva acquired Plaza in 2004 for $675 million from Prince Alwaleed bin Talal of Saudi Arabia
According to the statement, the offer is for NIS 14.78 ($3.88) per share, similar to the stock's current market value. All in all, Tshuva aims to purchase Elad Canada's entire issued share capital (11%) for a total of NIS 188.6 million ($49.5 million). The remainder of the shares (89%) is already owned by parent company El Ad Group.
Elad Canada is the fifth company Tshuva has attempted to delist from trading in the past 18 months, the first being Delek Energy which eventually was not delisted after several failed attempts.
Tshuva also attempted to delist Delek Israel, but was stymied by its shareholders. Last year Tshuva acquired and delisted Gadot Biochemical, and last June Elad Tshuva, Yitzhak Tshuva's son, delisted Elad Europe under his control.
Elad Canada, which deals with income producing residential property and project development, was listed on TASE in 2010 and traded on a NIS 1.65 billion ($430 million) market cap.
Its share offering was an uphill struggle from the onset, with drawn out negotiations with the offering's underwriters, and ended with an issuing of a mere 11% of the company’s stock.
This report was originally published in Hebrew by Calcalist
